Page 6 - REPORT ON THE IMPLEMENTATION OF THE 2020 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2021 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT

history, we made ensuring stability on the six fronts the foundation of our efforts, and clearly
defined the tasks required for maintaining security in the six areas, with a particular emphasis
on securing employment, meeting basic living needs, and protecting market entities. We
remained committed to maintaining security in order to deliver the stability needed to pursue
progress. Taking into account China’s national conditions and realities, we took prompt and
decisive action while maintaining our resolve, and refrained from resorting to a deluge of
strong stimulus policies. Instead, we balanced large-scale economic policies and intensified our
macro policies to counteract the negative impacts of Covid-19, thereby strengthening the
internal forces driving economic growth and ensuring more balanced and more sustainable
development.
1) Major indicators were better than expected.
China’s gross domestic product (GDP) in 2020 reached 101.6 trillion yuan, an increase of
2.3%. A total of 11.86 million urban jobs were created and the year-end surveyed urban
unemployment rate was 5.2%. The consumer price index (CPI) rose by 2.5%. A basic
equilibrium was maintained with regard to the balance of payments, and foreign exchange
reserves were kept at over US$ 3 trillion.

Figure 1. GDP and GDP Growth of 2020

GDP Cumulative year-on-year growth
Trillion
Yuan %
120 15.0
101.5986
100 10.0
80 71.9688
5.0
60
45.4712
2.3 0.0
40 0.7
20.5727 -1.6
20 -5.0
-6.8
0 -10.0
the first quarter the first two quarters the first three quarters the entire year

2) Epidemic relief policies for enterprises were effectively implemented.
We implemented large-scale tax cuts and fee reductions on a time-limited basis in order to
help enterprises. We reduced or eliminated VAT on small-scale taxpayers in the current stage,
temporarily reduced or waived enterprises contributions to basic old-age insurance,
unemployment insurance, and workers’ compensation schemes, halved enterprises
contributions to basic medical insurance for urban workers, and implemented time-limited
supportive policies on the housing provident fund, saving market entities more than 2.6 trillion
yuan over the course of the year.
We developed new methods for implementing macro policies. The central government

5